Professional Documents
Culture Documents
by D Bawden
A THESIS Submitted to the Graduate Faculty in partial fulfillment of the requirements for the degree
of Master of Science in Agricultural Economics
Montana State University
© Copyright by D Bawden (1959)
Abstract:
This thesis is presented in the form of a guide which dryland wheat farmers may use in planning a
supplementary cattle fattening enterprise.
Because of the nature of the subject, this guide cannot be a precise step-by-step process, which, if
followed, will bring about an exact result.
It is, rather, a loose, somewhat pliable framework which can be used in an effort to maximize specific
results. The underlying assumption is that, regardless of the project, one must follow some semblance
of order or little good will be derived.
A study of this type is timely for three reasons: (1) the dryland wheat farmer is searching for a
profitable use of his surplus labor during the winter months; (2) he already possesses many of the
facilities required in cattle feeding; and (3) he has had little or no experience in this type of operation.
For the first two reasons, it is predicted that many wheat farmers will begin a winter cattle fattening
program. For the last reason, a guide is needed to assist the inexperienced feeder in his venture.
On the following pages the problem is first discussed, analyzed and limited. A general discussion
follows on the aspects and processes involved in pre-budget planning. Finally, the guide is formulated,
and a hypothetical feeding operation is created to explain its use.
Because this is a subjective, presupposing study, it has no definite conclusion. Yet, after reading it, one
can hardly visualize a profitable unplanned feeding operation. Possibly the most significant impression
is that profit cannot be realized consistently without planning, and this thesis merely presents a guide
by which this planning may be accomplished.
A PLANNING GUIDE FOR FATTENING CATTLE ON DRYLAND
WHEAT FARMS IN THE TRIANGLE AREA OF MONTANA
by
D. LEE BAWDEN
A THESIS
in
at
• -I > I I- , I-"'
MontanaxState College
Approved:
Chairman, ExaminingOGdmmittee
TITLE PAGE
LIST OF ILLUSTRATIONS............................................ ii
LIST OF TABLES . . ................................................. ill
ACKNOWLEDGMENTS ................................................... iv
ABSTRACT ......................................................... v
PART I. INTRODUCTION............................................ I
A. The P r o b l e m .............................................. I
CT OJ NJ
B. Objectives
C. Major Limitations . . . .
D. Procedure ...............
XO CD -J -J
PART II. CHARACTERISTICS OF AREA
A. Climate and Topography .
B. Type of Farming ........
C. Type of Feeding ........
PART V. C O N C L U S I O N .............................................. 59
A P P E N D I X ......................................................... 61
A. Rate of Gain Per A n i m a l .................................. 62
B. Variable Feeding Cost PerA n i m a l ........................ 63
C. Cost of Equipment andF a c i l i t i e s ........................ 64
D. Depreciation S c h e d u l e ....................... 66
BIBLIOGRAPHY ..................................................... 67
136418
LIST OF ILLUSTRATIONS
ii
LIST OF TABLES
ill
ACKNOWLEDGMENTS
iv
ABSTRACT
A study of this type is timely for three reasons: (I) the dryland
wheat farmer is searching for a profitable use of his surplus labor
during the winter months; (2) he already possesses many of the facili
ties required in cattle feeding; and (3) he has had little or no ex
perience in this type of operation* For the first two reasons, it is
predicted that many wheat farmers will begin a winter cattle fattening
program. For the last reason, a guide is needed to assist the inex
perienced feeder in his venture.
v
PART I
INTRODUCTION
The Problem
that there are few enterprise alternatives which he may use to supple
he must observe the acreage allotments imposed upon him by the Federal
manner.
their time during the winter months except to repair their machinery.
Because of high farm income in the past years, many farmers have
that such attitudes may change. It is probable that many will favor
it has been suggested that dryland wheat farmers may be able to carry
profit, if any, every farmer could make with this supplemental enter
Objectives,
of the areas in which choices must be made by the farmer prior to the
feeding operation, and (2) a budget outline in which the farmer may
introduce his own costs to determine the marketing margin needed for ■
a profitable operation. .
- 3 -
Major Limitations
the problem. It is hoped that, within these limitations, the study will
dryland wheat farmers in the Triangle Area of Montana-^ (see Figure I),
Due to the limitation of available time and money, the study of dryland
cattle fattening operations was made only in this area. This section
areas of the state, and because its environmental conditions are similar
TOOLE HILL
C H O U T E A U
T E T O N
UDI TH
SASfNj
Procedure
will include all of the expense and receipt items relevant to this
I/ Full feed means that the cattle will be fed a ration consisting of
a large percentage of concentrates to achieve the maximum rate of
gain.
2/ Limited ration means that the cattle are fed less concentrates than
they require to achieve the maximum rate of gain throughout the en
tire feeding period.
\
— 6 —
the cost and revenue figures will be based upon information from in
natives and the cost and revenue figures apply only to the hypo
thetical farm, and, in some cases, they may not even be the wisest ■
choices for this type of organization because some are established only
J--:
PART II
CHARACTERISTICS OF AREA
Area, will be presented below. From this, the reader will better under
The influence would be less were it not that this feeding operation
is treated as an enterprise supplementing the established farm.
•2/ Ibid., p. 5.
— 8 —
Type of Farming
of Montana. Both winter and spring wheat are grown in abundance, and
little barley was grown. However, barley production has increased more
than 475 percent since that time^ and -id: is now one of the major crops
Only 4 percent of the harvested crop acres is irrigated, and over one
435, but the average number of cultivated acres is nearly twice this
amount because most farmers in this area summer fallow one half of their
Most of the area, with the exception of Fergus and Judith Basin
this type of soil, and the lime is close to the surface; thus, there is
and Judith Basin Counties fall primarily into the Chestnut and Chernozem
3/
groups, i=e., dark brown soils.— '
Type of Feeding
■2/ For a more specific discussion of the soil types in this area see
the Montana Agricultural Experiment Station's Soil Survey (Recon
naissance) of Central Montana, Series 1940, No. 9, Bozeman, Montana,
February, 1953, pp. 1-133; and Soil Survey (Reconnaissance) of the
■Northern Plains, Series 1929, No. 21, Bozeman, Montana, 1933, pp. 1-74
10 -
this area were interviewed during the summer of 1956.^/ Of these 50,
only to the 38 feeders and will include only cattle fed during the
winter of 1955-56.
The average number of cattle fed was 67 head, and there was little
areas in the age and sex of cattle fed. In some sections the farmers
ber— the average date being November 16. Twenty-five operators fed
cattle they themselves raised, seven purchased them from the sale ring,
four bought directly from ranchers, and two supplemented their own
Two-year-olds only 5%
grocery stores or slaughter plants, nine used the sale ring, five sold
to order buyers, and one shipped to St, Paul, The average transportation
distance per sale, paid by the seller, was 54 miles (excluding the ship
ment east).
Most farmers used only two kinds of grain in their ration— either
ley and oats (40 percent). Only 5 percent of the feeders used a cereal
other than the two above. Nearly everyone had the grain steam-rolled
7
with a small amount of molasses mixed in during the rolling process.
Sixty-nine percent of the farmers used all home grown grain, 15 percent
- 12 -
i'
purchased lfess than one fourth of it, and 15 percent purchased all of
some sttaw. Very few fed oat Cr alfalfa silage, and 34 percent fed
Stilbestffel,
PART III
PRE-BUDGET PLANNING
that a great deal of planning and preparation must precede the actual
feeding operation.
that the first and primary function of planning is to estimate the pro
fitability of the feeding operation. Before this can be done, the po
tential feeder must first make several choices which will enable him
pense involved in,the feeding operation. The areas where choices must
6. Ingredients of ration
the best choice. Also, the farmer must estimate what the weight of the
cattle will be at the end of the feeding period. Only after these
steps have been taken can the prospective feeder prepare a realistic
fed them a reasonable length of time, and sold them. Now, he must
After the cattle have been sold for slaughter, the feeder should
not only figure carefully his profit or loss, but he should review his
find the sources of variation in his costs and returns. From this he
manner.
feed|ng operation will be planned. This section (Part III) will con
following page.
- 15 -
The farm is located in the Triangle Area, 15 miles from the nearest
are waste land (farmstead, fences, roads, etc.), leaving 870 acres
year, so only 435 acres may be used for the production of cereal grains,
Assuming this farm had all 435 acres in wheat before acreage al
Choices to Be Made
and a selection will be made of the one alternative best suited to the
Type of Feeding
period is that the animals may founder, get diarrhea, or go off feed.
Later in the feeding period when the cattle are accustomed to a heavy
ration, they can usually eat as much as desired without any ill-effects.
feeding operation. The troughs will be filled by hand and the ration
.limited during the first part of the feeding period. Later, when the
grain will be kept in the troughs so they may eat all they desire.
Age of Cattle
Most of the cattle fed at the present time in the Triangle Area
one advantage of feeding calves is that they make cheaper gains than do
- 17 -
fattening. However, they cost more per pound to buy as feeders, their
gain per day is less, and they must be fed a longer period of time to
wise for a beginning feeder to fatten calves until he has had some
is limited, and because calves are not so easy to feed, yearlings will
Sex of Cattle
Whether heifers or steers are fed will depend upon personal pre
differential between heifers and steers at buying time, and the expected
price differential at selling time. The farmer may choose to feed only
•2/ Maynard, E. J., Beets and Meat, Great Western Sugar Company, Denver,
Colorado, September, 1950, pp. 30-31.
18 -
Quality of Cattle
must first decide the grade he would like his fattened cattle to reach
at selling time. This will depend upon the existing market in the
feeder's locality.
the West Coast. Neither of these markets show a strong demand for
From this, a low choice will be chosen as the goal for the feeder on
grade feeder. Good grade feeders may be purchased, but they must be fed
2/
longer to reach choice at selling time.— '
as a recommendation, because this will depend upon the present and ex
over good grade feeders, and the farmer feels this premium will not be
------ .. ' r
2/ Ibid., p. 31
- 19 -
so great when he sells his fed cattle, he should buy the good grade -
feeder.A/ But he must not try to feed them to an extremely high degree
Weight of Cattle
prospective feeder must also plan the length of the feeding period and
the amount of feed that will be needed. If.the animals are heavy when
they are put on feed, only a short feeding period may be required to
reach the choice grade. Conversely, if they are too light, the feeding
period may extend into the planting season before a choice grade is
reached. This may require the use of man-hours for feeding which are
mining the weight at which they should be acquired, the feeder must take
into consideration the daily rate of gain expected (derived from the
type and amount of ration to be fed) and the length of^the feeding
buying weight may vary slightly at the time of purchase according to the
weights and prices of feeder cattle available in the area, but a large
the hypothetical fattening operation will be from 575 to 625 pounds (or
cess of a feeding operation is the kind of ration that is used and the
amount of this ration that is fed. Only the ingredients of the ration
subheading.
The ingredients of the ration may vary from year to year, depending
on the price relationship between the different feeds. Also, they need
not be limited to only those feeds which can be home grown, because it
is not always known at the time of spring planting what ration will be
the best to use during the next winter's feeding operation. If a farmer
can profit by selling his home grown feed and purchasing some other kind
Area, and the need for disposing of it in the most profitable manner,
- 21 -
barley will usually be a part of the ration? Some farmers claim that
shown that fattening cattle will make as rapid gains on ground barley,
the ration it should be cracked or rolled for cattle and not fed
Oats are also grown in abundance in the Triangle Area, so this iq\
valuable during the first part of the feeding period because cattle will
fit from grinding oats for calves up to one year of age. However,
Finely ground oats are of lower feeding value than are whole oats.-^/
group of cattle all during the feeding period and a similar group is
fed straight oats for the entire period, oats are worth only about 86
and total digestible nutrients than are oats.^/ This suggests that
straight oats should not be fed throughout the entire feeding period;
either of the two alone, depending upon the price relationship between
the two cereals. If the price of oats is low relative to the price
it does not exceed approximately 30 percent of the mixture (see Figure 2).
80 100 120
Oats— Cents per Bushel
Figure 2. Scale of Prices of Barley and Oats and Their Relative Values
for Fattening Beef Cattle.a/
cents on the line marked barley, and it will intersect the scale for
cents per bushel, feed straight barley. This, of course, pertains only
Although this is an excellent guide, the feeder should not rely com
mix oats with barley, even if the price is high relative to that of
barley.^/
obtained.
In some cases, other grains have been and are being used success
barley and oat production is especially adapted to this area, and be
cause 95 percent of the feeders interviewed fed only barley and/or oats,
will be assumed that barley and/or oats will comprise the grain ration
made, straight barley will be fed after the cattle have become accustomed
to a fattening ration.
At the beginning of the feeding period, the grain ration will con
oats will be steadily decreased until the animals are on straight barley
ment to their new feeds, and their consumption increases faster than if
they were fed straight barley -from the beginning. Here again, there are
pound of rolled barley and over one fourth of .a pound of hay if fed
and oats the cattle can get enough protein to fulfill their requirements.
However, all grains, except yellow corn, have little carotene value
in the animal’s body), and there is a definite need for this in a fat
tening ration. At the present time, there is no known lack of any other
Cattle do store carotene in their bodies, and they draw upon this
when fed a ration with a Vitamin A deficiency. How long they can do
this depends upon their body store and their age— calves will show
appear.
feed than a vitamin supplement, and it supplies more dry matter to the
fed straw to supply the necessary dry matter. This is generally not
recommended because all straw is very low in mineral, protein, and Vita
l/
the total ration.-7
For the above reasons hay will be included in the ration for the
the hypothetical farm, for it can be assumed that the feeder must pur
chase his entire hay requirement. True, land presently used for cereal
are, according to the interviews, alfalfa, oat hay, and native hay (in
First, a comparison will be made between alfalfa and oat hay. Al
though mineral and protein content are important* this comparison will
average quality, bleached with some green color, will range from four to
bright green color, each will have more carotene value, yet alfalfa
will still have twice as much as will oat hay. Also, alfalfa will sup
ply more than twice as much digestible protein per pound.l / This in
types of native hay common to this area have considerably less carotene
retains its value better in the later stages of development than do most
of the other grasses,!/ 'In addition, all of the native grasses contain
protein, it will be used for hay on the hypothetical farm. This, how
two reasons.
are fed, there is a tendency for the animals to bloat.!/ This has not
it.
of hay used. Native hay of good quality* i.e. unbleached with a good
green color, may have more carotene value than poor quality alfalfa.
its Vitamin A value. Baled alfalfa will lose 3' percent of its carotene
content per month during the winter, 6 percent per month during the
3/
fall and spring, and 21 percent per month during the summer.-7 There
3/ Ibid., p. 11
- 29 -
feed. Results show that each animal on feed should be given approxi
Less than one half of the Triangle Area feedlot operators inter
iodine.
calcium if three to four pounds of alfalfa.'are fed daily. Grain is. very
_______ ___________
posed to the weather, however, block salt should be used because there
provide a covering over it to keep out rain and snow^ and fasten the con
It has not yet been proven that additional iodine is needed for
to the sun and air for several weeks will result in evaporation of the
iodine.
is recommended that it be mixed with ground rock salt at the rate of one
amount of iodine with such a large amount of salt is hot only bother
pothetical farm. No claim is made that this is the best possible ration
finite '' amount could be written to include all the possible feeds and
be assumed that the object is to feed the cattle as much as they can ,
most economical gain. The criteria for this decision are: (l) to
ration; and (3) to keep the animal otherwise healthy (i.e. prevent
while keeping in mind the other two limitations. In other words, first
basic elements. Then check this against criteria.two and three using
past feeding experience and/or common knowledge as the basis for com
changing after observing the effect of the ration on cattle, but this
does not reduce the need for a precisely planned ration prior to the
mended nutrient allowances for fattening cattle and (2) analysis of the
feeder from several sources, the most common probably being Feeds and
Weight Total
of Dry Digestible Digestible Caro
Animal Matter Protein Nutrients Calcium Phosphorus tene v
(lbso) (lbs«.) (lbs.) (lbs.) (lbs.) (lbs.) (Mg.)
Alfalfa hay, all analysis 90.5 10.5 50.3 1.47 0./4 11.4
Alfalfa hay, before bloom 90.5 ^ 13.7 53.4 2.22 CU 33 —
Alfalfa hay, l/lO to
.1/2 bloom 90.5 11.2 51.7 1.2 6 ,/ 0.22 19.4
Alfalfa hay, 3/4 to /
full 'bloom 90.5 10.3 50.1 _/ — 9.0
Alfalfa hay, past bloom 90,„5 9,2 47.6 T— 3.2
Barley, excluding Pacific
Coast 89.4 10.0 77.7 0.09 0.47 ——
Molasses, beet 80.5 4.4 60.8 Oo 08 0.02
Oats, excluding Pacific
Coast 90.2 9.4 ' 70.1 0.09 0.43 —
By using Tables III and IV, a trial and error process must be used
plished as follows $
for the hypothetical feeding operation, and the results are presented
in Table V below.
- 35 -
feeder. Here the amounts to be fed are figured for five-day intervals.
This, of course, does not mean that only 2.5 pounds of barley be fed
each day for the first five days and then increased to 3.5 pounds on the
sixth day. The cattle will be fed 2.5 pounds the first day, and the
amount will be increased gradually each day Until they are being fed 3.5
approximations, and the amounts fed depen^l a great deal upon the reaction
- 37 -
the same ration, so a feeder must closely observe his cattle, especially
during the first part of the feeding period. When the cattle are first
put on feed, they may tend to overeat; therefore, the feeder must be
careful to place in the feed troughs only the amount of feed he feels
“get ahead" of the cattle after they have been on feed approximately
20 days, i.e. more grain is placed in the troughs than they will eat.
This is known as self-feeding, and this method will be used during the
end of the feeding period, the cattle will be given all of the grain
and molasses combination they will consume, but the alfalfa will be
limited to four pounds per day. If too much hay is fed, the cattle will
tend to fill up on this and eat less of the concentrates, thereby re
grams are recommended for a 900 pound animal. Thus, the cattle will be
lacking about five milligrams of carotene during the last few days of
’
their feeding period. However, as stated on page 25, cattle store caro
tene in their bodies and can be fed a Vitamin A deficient ration for a
safe to assume that feeding four pounds of alfalfa during the latter
The cattle will be supplied all the Salt they wish to eat. Experi
ments indicate that cattle fed in drylot will consume about two thirds
of a pound of salt per head per month.— / However, some loss is in
volved when feeding loose salt, so about one pound of salt per head per
grain and hay, the supplement with the lowest protein content should be
protein and 10 milligrams of stilbestrol per pound. Thus, one pound per
head per day of this will be supplied the cattle in the hypothetical
feeding operation.
this sub-section are possible, and many feeders may find success in
ration, fed in the aforementioned amounts, will normally meet the three
the individual feeder. Usually, the farmer will find it most convenient
to begin feeding after fall work is completed and to sell the cattle be
fore spring work begins, because this is the period when his labor is
the least valuable. The exact time the cattle are purchased within this
period, however, will depend upon when the feeder can most economically
assumed the cattle for the hypothetical feeding operation are purchased
The decision of when to sell the fattened animal is one of the most
most costly errors are made by both the experienced and inexperienced
feeder.
The decision, of course, cannot be made before the cattle are put
factors, including the price of fat cattle, the variable cost of feeding,
and the current rate of gain. Because so many variables are involved, it
selling date. Each feeder must, as the feeding period progresses, pre
dict the future price of fat cattle and the further gain to be made by
- 40 -
the cattle. Then he must compare the profit or loss realized if the
cattle were sold now with the profit or loss to be realized in the
future. To do this, the farmer must have a budget for the feeding
to sell.
able selling date is somewhat vague and confusing, two examples will be
daily rate of gain and a daily variable cost of feeding must be estab
lished for use in the examples. These are estimated figures for the
the average curves for all feeding operations. These estimates are pre
2.5 ■
Pounds
2.0 .
1.5 .
1.0 .
0.5 -
O 20 40 60 80 100 120
Days
Figure 4. An Example of the Daily Variable Feeding Cost Per Animal-
sell. Basic assumptions in both situations are that the cattle can
slaughter, and that the prices of good grade and choice grade slaughter
unrealistic; however, a constant price will serve the purpose for which
examples.)
cents per pound, and the price of choice grade is 31 cents per pound.
— 42 —
Al so, it is assumed that the cattle will reach the choice grade at 930
shown in Figure 3. Thus, the gross income per animal from each day's
cents for the first 130 days, and by 31 cents for the remainder of the
feeding period. By comparing the daily gross income per animal with the
daily variable cost of feeding per animal, the optimum selling date can
From this graph the conclusion can be drawn that, whenever prices
are constant and the daily gross income per animal exceeds the daily
variable cost of feeding per animal after the cattle reach the choice
grade (point A), feeding should continue until the two become equal
may be the case. If sold before this time, profits from the last few days
of feeding would not be realized. If the cattle are fed after this date,
the daily variable cost exceeds the daily gross income, and unnecessary
cents per pound, and the price of choice grade is 25 cents per pound.
Here again it is assumed that the cattle will reach choice at 930 pounds,
Figure 3. To compute the gross income per animal from each day's
feeding, multiply the daily gain per animal by 22 cents for the first
130 days, and by 25 cents for the remainder of the feeding period. Then,
as in Example No. I, compare the daily gross income per animal with the
Figure 6.
sold when the daily variable feeding cost equals the daily gross income.
This rule applies only when the daily gross income exceeds the daily
variable cost of feeding after the animals reach the choice grade. When
daily variable cost exceeds daily gross income after reaching choice,
The feeder may ask, "Because the feeding operation will operate at
a loss when daily variable costs exceed the daily gross income, why feed
Thus, the initial 600 pounds that were purchased at a price of 2 0 -cents
per pound has a selling price of 25 cents per pound, and this profit
exceeds the loss of adding the 330 pounds of gain during the feeding
This rule also applies if the daily variable cost exceeds the daily
per pound and the price of choice grade is 23 cents per pound. Here,
too, a profit may be realized due to the increase in grade and price per
These examples indicate the general method for determining the op
Oays .„
by placing more emphasis on chance and insight into future prices, but
the basic principles remain the same. If the feeder has prepared a
this method will be relatively simple to use6 Budgets and records will
not dictate the exact optimum selling date because prices are variable;
but without them, one can only guess at this date, thereby increasing
feeding operation, the rate of gain, daily variable cost, and daily
Number to Feed
enough feed grain for his planned feeding operation can usually but from
a neighbor.
not a limiting factor and there are few existing facilities. Therefore, ■
the amount.of feed grain the hypothetical farm's 130 "extra" acres will
cattle to feed.
fatten an animal-, and how much this 130 acres will produce. In totaling
up the estimates in Table VI of the amount of grain each animal Will con
sume, it is found that during 130 days each animal will eat approximately
105 pounds of oats and 2,050 pounds of barley. When feeding 100 cattle
buy the oats than to seed and harvest so few acres of them.
— 47 —
For the seven-year period, 1950 through 1956, the average yield of
barley per harvested non-irrigated acre in the Triangle Area was 27,1
produce 3,510 bushels of barley on its 130 acres. If each animal con
amount of barley would feed about 80 animals for that length of time,
of the feeding period before the cattle are put on feed. So, in order
this operation. Then there will be enough barley to feed these 70 head
for approximately 145 days, in the event this is found to be the most
Equipment Required
cause of excessive exercise, i,e, the cattle may tend to "run off" their
each animal in an Unpaved lot,-?/ One hundred and fifty square feet per
side of the feedlot a chute will be constructed for loading cattle into
a truck. The ramp will be removable so the chute can also be used to
selecting the site for a feedlot. The ground should slope gradually to
Also, .if over 50 animals are fed, and they vary in quality a great deal
two different pens. This would allow the operator to feed each group
fed here, and they will all be choice grade animals of the same sex, only
Bue to the severe winters in the Triangle Area, some type of shelter
must be provided when feeding cattle during the winter months. This may
tening Montana Cattle that feedlot sheds are not necessary in the Tri
angle Area, as a general rule, except, perhaps, when feeding calves. Be
will be used. It will be a solid one inch thick 'board pahel extending -'
from the top of the fence to eight feet above the ground-=' on the north
and west sides of the feedlot, as these are the directions of the pre
Grain troughs and hay mangers are needed, and.it is recommended that
two and one-half linear feet per head of trough space and a similar length
at the hay mangers be allowed.^/ The hay mangers will be along the south
and east sides of the feedlot to facilitate unloading of hay from a truck
by driving on the outside of the fence» The grain troughs will be lo
cated in the center of the feedlot on each side of a grain storage area.
This area will have a cement floor on which the grain will be piled and
a roof for weather protection. Siding extending down from the roof to
approximately two feet above the feed troughs will partially enclose the
area. One end will be completely enclosed, and large doors will be con
Only grain that has been prepared for feeding will be stored in this
area.
A large box is also needed for salt and.bone meal. To minimize the
Black, W. H., Feedlot and Ranch Equipment for Beef Cattle, United
States Department of Agriculture, Farmers’ Bulletin No. 1584,
Washington, D. Co, May, 1940, p. 4.
For a detailed discussion of feedlot sheds see the South Dakota Agri
cultural Experiment Station's Beef Cattle Housing in the North Cen
tral. Region of the United States, South Dakota State College,
Bulletin No. 382, Brookings, South Dakota, June, 1946, pp. 5-19; and
Black, W. H., oo.cit.. pp. ‘1-3.
roof-type cover above it to protect the contents from rain and snow.
water they will drink. A minimum of 10 gallons per head daily should
well and pump which will supply this amount,. If the pump will supply a
priced feed as fuel to heat the water and this proves too costly.^/ A
small oil heater will be used for the hypothetical feeding operation.
Suppose 70 head of cattle are on feed and they can be sold cur
rently as choice for 24 cents per pound liveweight. If they are fed
for three more weeks, it is expected that they can still be sold as
■choice for 24 cents per pound. If it is costing 66 cents per day to feed
each animal, should they be sold now or fed for three more weeks? Are
they gaining enough to more than offset the feeding costs? Without
If the average gain is 2.75 pounds per head per day, the daily in
come per animal (2.75 x $.24 = $.66) exactly equals the daily feeding
feeder estimates the daily gain at 2.80 pounds, but actually, they are
only gaining 2.00 pounds per day. If feeding costs and daily gain re
main the same, he would lose $3.78 per animal or a total of.$264.60 by
feeding three weeks longer.. This is a substantial loss, and yet the
many of those actually made by feeders. Suppose the cattle were only
gaining one pound per head per day. If feeding costs and daily gain re
three weeks.
Thus, a feeder must not only know his feeding costs, but he must
also know how fast his cattle are gaining in order to determine the
correct time to sell. A feeder can only know how fast his cattle are
erroneous guessing would more than compensate for the cost of the scales.
Therefore, scales will be used on the hypothetical farm, and they will be
located adjacent to the chute for easy handling of the cattle when they
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feet) and located in such a manner that a truck may also be weighed on
The stationary equipment for the feedlot has now been described.
Below is one of a great number of plans for a feedlot design (see Figure
proposed, however, that this is the best feedlot design; only a con
operation.
data exist to compare properly the value of ground grain with that
having been rolled, so the choice is left to the decision of the farmer.
Rolled grain will be used in this feeding operation because nearly all
There is also the choice between steam and dry rolling. Again there
for him to buy his own rolling mill. For example, the prevailing charge
122'
Windbreak Z
Grain Troughs
+ I
100 ' V
t '
Grain Storage Sheds 10’
I
16’
90’
Water Tank
Hay Manger
l/8" = 3 ’
++++ Gates
mill can be_ purchased for approximately $550.00. Little doubt remains
that it would be wise for a farmer to purchase his own rolling mill, so
assumed that the hypothetical farm already has a truck. Also a tractor
and manure loader attachment are necessary to clean the feedlot of manure
Bins are needed to store the grain which will be fed to the cattle.
However, most wheat farms will have enough existing bins to store the
a budget can be prepared have now been discussed. The decisions made
within these areas are extremely important, for they are the founda-v
tion upon which a feeder makes the final decision of whether or not to
Using the choices made in Part III, a budget can now be prepared
cisions must be made to provide a basis from which the budget will be
prepared.
Budget Decisions
alternatives,.
item. Depreciation and interest on the truck, tractor, and grain bins
will not be charged to this operation because they are primarily used
in the ndrmal operation of a wheat farm. All other equipment and fa
cilities, including the manure loader attachment for the tractor, will
It is assumed the farmer uses only his own labor to feed the cattle
and ..build the chute, feed pen, grain troughs, hay mangers, and all of -
the grain storage shed except the concrete floor. The cost of pouring
the concrete floor, digging the scale pit? and installing the scales will
Twenty cents per pound will be paid for the cattle and this will in
elude delivery to the farm. Assuming the selling price will exclude de
The Budget
Cost estimates used in the budget below will be either from (I) in
Expenses:
Depreciation (continued)
Water Heater 5.80
Rolling Mill 55.00
Manure Loader 32.00
Paint".. 65.07 450.05
Total Expenses $14,224.10
V National average support prices for barley and oats for 1950 through
1956, Agricultural Marketing Service, The Feed Situation, Washington,
D. C., July 30, 1956, p. 18.
The total annual expenses for the feeding operation, including the
sold on the 130th day of feeding as planned, they have gained 332.5
pounds per head; thus averaging 932.5 pounds when sold. By dividing
$203.20 by 932.5, it is found that the cattle must be sold for 21.8 cents
or not to feed has now been illustrated— except for one step. Now that
the feeder knows what the selling price must be to break even financially,
he must predict the future price of slaughter cattle. This is the most
base this prediction is scant. Studying the past and present cattle
markets will be a great help, yet much depends upon chance. Possibly
the most practical solution is to feed year after year, and if the farmer
competes favorably with other feeders, he will show a profit in the long
run. And he who intelligently budgets for his feeding operation will
CONCLUSION
ever, intended that the farmer copy his fattening operation after the
superior to the one used here may be found by the farmer to further re
basic decisions that must be made and the budget outline that may be
'' ' 11:,
followed. . -u i m
also talk with experienced feeders in his locality, send for infor
mation on feeding from the State Experiment Station, and take any other
duct a feeding operation, the feeder can then proceed to plan for the
- 60 -
feeder (and possibly others who have no formal plan of their operation)
of the need for planning and that it can serve as a useful tool for him
and his more progressive contemporaries who already realize that profits
j
APPENDIX
— 62 —
.0 .. .75
'.30 .900. 9.00
IOth 1.05 9.00
1.250 12.50
O
3.250 32.50
I
2.950 24.50
r
2.750 27.50
I
25.50
CM
2.550
r
Feecti/ _ .
BarleyY- $.0347 $.0809 $.1686 $.3465 $.4158 $.4389 $.4620
.Oats£/ , .0337 .0787 .0833
MolassesY . :0120 .0280 .Q&60 .0900 .1080 .1140 .1200
.2125 .1625 .1125 .0625 .0500 .0500 ..0500
' Alfalfa®/ ,
StilbastrolZ/ .0425 .0425 .0425 .0425 .0425 .0425 .0425
Salts/ ' . .0007 .0007 .0007 .0007 .0007 .0007 .0007
Operating Exp.Y .0070 .0070 .0070 .0070 .0070 .0070 .0070
InterestY .0217 .0217 .0217 .0217 .0217 .0217 .0217
Grain Troughs:
2 x 4 (#2 & 3) 206 bd. ft. @ $130/1000 .. . $ 26.78
2 x 6 (#2 & 3) 500 bd. ft. @ $130/1000 .. 65.00
2 x 12 (#1) 1080 bd. ft. @ $170/l000 183.60
4 x 4 (#1) 216 bd. ft.@ $170/1000 36.72 . ,
"Bolts (5|-" x5/8") 352@ $ . 2 0 ea. 70.40 ■
Total $ 382.50
Grain Shed:
I x 8 (Utility) 1104 bd. ft. @ $90/1000 ■ $ 99.36
1 x 10 (#2 & 3.) 976 bd. ft. @ $130/1000 126.88
2 x 4 (#2 & 3) 337 bd. ft. @ $130/l000 43.81
4 x 4 (#1) 214 bd. ft. @ $170/1000 36.38
Shingles (#167 Asphalt) & Roof Edge 1104 sq. ft. 99',go
Felt 1104 sq. ft. 12.00
Concrete 17 cu. yds. @ $15/cu. yd. 255.00
Nails 20.00
692.43
Salt Box:
2 x 6 (#2 & 3) 19 bd. ft. @ $130/1000 • $ 2.47
Total 2.47
Scales:
Frame $1,236.50
Rack: Metal 270.50
Lumbers 2 x 6 (#2 & 3) 252 bd. ft. @
$130/1000 32.76
2 x12 (#1) 216 bd/ft. @ $170/1000 36.72
Pit, Concrete &Installation 2,000.00
Total $3,576.48
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^-.
^ i
K-:
Grand Total Cost ' $6
.', 1- .' '
,
-I . ;'
- 66 -
/
APPENDIX D. DEPRECIATION' SCHEDULE —
V One coat of paint is applied every three years; thus, for the cost
per year, the life of the first coat is estimated at 10 years and
the second coat at three years.
_____ .BIBLIOGRAPHY
Black, W. H., Feedlot and Ranch Equipment ,for Beef Cattle, United State.s
Department of Agriculture, Farmers* Bulletin No. 1584, Washington,
D. C., May, 1940.
Iowa State College Staff, Midwest Farm Handbook, Second Edition, Iowa
State College Press, Ames, Iowa, 1957.
Maynard, E. J., Beets and Meat, Great Western Sugar Company, Denver,
Colorado, September, 1950,
-.V c